Part A

Strathfield Ltd manufactures lawnmowers and uses job costing. Manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $500,000, and the expected machine hours for the year is 20 000 machine hours. At the end of each month, Strathfield Ltd closes the over-applied or under-applied manufacturing overhead to the cost of goods sold account.

The following balances were recorded in the accounts of Strathfield Ltd:

1 April 2020

30 April 2020

Direct Material

13,250 Opening

15,600 closing

Indirect Material

1,335 opening

2,035 closing

Work-in-Process

17,975 opening

21,570 closing

The following events occurred in April 2020:

a.Purchased direct material on credit for $18,850.

b.Indirect materials of $2,200 purchased in cash.

c.Paid the factory electricity account of $650 in cash.

d.Recorded depreciation for the month of $3,500 on factory equipment and $2,000 on administration assets.

e.Incurred and paid the wages for the month; $35,000 for direct labour and $21,000 for indirect labour.

f.April's adjustment for insurance cost on manufacturing equipment is $520. The premium was prepaid at the beginning of the financial year.

g.Incurred and paid other factory overhead costs, $10,500.

h.Paid advertising expenses in cash, $5,500.

i.Incurred miscellaneous selling and administrative expenses, $13,250.

j.Actual machine hours recorded for April, 1 535 machine hours.

Overhead is applied on the basis of machine hours

i) How do i prepare a schedule of costs of goods manufactured for the month ended 30 April 2020.Show the actual manufacturing overhead, over/under-applied manufacturing overhead and applied manufacturing overhead

ii) i.what is the journal entry to close the Manufacturing overhead account at the end of the month.